Alternative Fuels -- State Regulations for Michigan

This page contains selected data from the Alternative Fuels Data Center (AFDC) at the U. S. Department of Energy. Additional details and the latest updates may be found at the AFDC summary page for Michigan.

General

Inspection Exemption (emissions)

Dedicated AFVs powered by compressed natural gas, propane, electricity, or any other source as defined by the Michigan Department of Transportation are exempt from emissions inspection requirements. (Reference Michigan Compiled Laws 324.6311 and 324.6512)

Tax Exemption (alternative fuel vehicles)

Qualified AFVs are exempt from personal property taxes. The exemption only applies to personal property that is new to Michigan. To be eligible, the vehicle must not have been previously taxed or exempted from taxation under another law. Eligible vehicles must also:Be produced by an original equipment manufacturer;Meet the Federal Motor Vehicle Safety Standards;Meet local emissions standards; andBe propelled by natural gas, fuel blends containing at least 85% ethanol), liquefied petroleum gas (LPG, or propane), or fuel blends containing at least 85% methanol), or be a fuel cell vehicle, electric vehicle, or hybrid electric vehicle.The Michigan NextEnergy Authority must certify the vehicle in order for it to be eligible. The exemption expires on December 31, 2012.(Michigan Compiled Laws 207.82 and 211.9(i))

Tax Reduction (ethanol, biodiesel)

A tax of $0.12 per gallon is imposed on gasoline containing at least 70% ethanol (E70) and diesel fuel containing at least 5% biodiesel (B5). This is a $0.07 discount compared to the conventional gasoline tax of $0.19 per gallon and a $0.03 discount compared to the conventional diesel tax of $0.15 per gallon. Ethanol is defined as denatured ethanol fuel that is suitable for use in a spark-ignition engine when mixed with gasoline and must meet ASTM D5798 specification. Biodiesel is defined as a fuel composed of mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats and meets ASTM D6571 specification, as approved by the Michigan Department of Agriculture. Funding for this tax reduction is subject to appropriation. (Reference Michigan Compiled Laws 207.1008)